Suppose that tacos and pizza are substitutes, and soda and pizza are complements. We would expect an increase in the price of pizza to:
A. increase the demand for both soda and tacos.
B. reduce the demand for both soda and tacos.
C. reduce the demand for soda and increase the demand for tacos.
D. reduce the demand for tacos and increase the demand for sodas.
Answer: C
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A. 14% B. 12% C. 10% D. 16%
Using the "It's not fair if the result isn't fair" principle of fairness, an income tax designed to transfer wealth from the rich to the poor
A) increases efficiency and equity. B) increases efficiency and does not affect equity. C) decreases efficiency and increases equity. D) decreases efficiency and equity.
During the bureaucratic bargaining process, if the legislature tries to counteroffer by saying it wants less output at a given price, the bureau's can employ the strategy of _____
a. saying no b. telling the legislature that reducing the output would endanger lives c. telling the legislature that at the lower output, the price per unit will be much higher d. making a counter-offer of more output at a lower price
The MRP schedule of the perfect competitor declines _____ than that of the imperfect competitor.
Fill in the blank(s) with the appropriate word(s).